Algorithmic Trading: It’s Easier Than You Think

May 07, 2021 | 

Algorithmic Trading: It’s Easier Than You Think

Algorithmic trading is a method of placing and executing orders based on a predetermined set of rules, in an automated fashion. The world’s most successful traders and investment firms deploy automated trading strategies to leverage the computational power and speed of computers versus manual traders. Algorithmic trading tends to result in more refined decision-making while processing trades at a significantly faster pace than the rest of the market’s participants.

From the outside looking in, algorithmic and automated cryptocurrency trading can seem like a complicated endeavor. One that has a steep learning curve and requires a high degree of technical knowledge. In this article, we look at the primary benefits of deploying an automated trading strategy and provide instructions for getting started to show you how easy it really is.

Algorithmic Trading on Beaxy Exchange

Your Beaxy Exchange account can be connected to third-party automated trading platforms that are easy to set up and use successfully.

Deploying a trading bot has several advantages over manual trading. Trading bots can optimize the speed, efficiency, and volume of each order. Algorithmic trading minimizes emotional trading decisions in favor of data-driven decisions.

Trading strategies that you want to automate can be backtested to determine the historical returns of a given configuration. When you connect your Beaxy account to Hummingbot, an open-source program for market-making, you can adjust your bot’s configurations to make it consistently profitably.

On MetaTrader 5, browse through algorithmic strategies that are listed by other traders. Here, you can purchase and deploy strategies based on their historical success which is displayed on the platform.

MetaTrader 5 Automated Trading Strategies

When you connect your Beaxy account to MetaTrader 5, you get access to one of the world’s largest community marketplaces for trading. Download MT5 for free and generate MT5 wallets in your Beaxy account to trade spot crypto algorithmically using the strategies offered by the community.

Once you’ve, installed MetaTrader 5, you’ll be asked to create an MQL5 account. This is the account you will use to gain access to a marketplace of trading bot strategies. The automated strategies are developed by experts utilizing MQL5, the proprietary trading language used to build, backtest, optimize trading bots.

Inside the marketplace, you can sort the automated strategies by their past success to find the ones that have performed the best. The MQL5 marketplace has strategies that are optimized for specific cryptocurrencies like Bitcoin or Ethereum.

The example shown below depicts the Money Mind BTC strategy that was created by a verified MQL5 developer named Antonio Simon Del Vecchio. In the marketplace, we can see that this strategy can be rented for 3 months for $125 or purchased permanently for $200. Additionally, each strategy listed on the marketplace has:

  • The indicators and analytics that the strategy is based on.
  • The trading pair(s) that the strategy is optimized for.
  • The timeframe that the strategy runs on.
  • The number of traders who are using the strategy
  • Comments and reviews from traders who purchased or rented the strategy.
  • Backtested historical returns.
  • A log of updates that were implemented by the author.

Check out this article for a more in-depth guide to connecting your Beaxy account to MetaTrader 5 and deploying a successful algorithmic trading strategy with just a few clicks.

Algorithmic Trading: It’s Easier Than You Think

Hummingbot Market Making Strategies

On March 8th, 2021, Beaxy Exchange was integrated into the official branch of Hummingbot, a free-to-use, open-source platform for automated market marking.

Hummingbot is one of the most straightforward algorithmic trading experiences in all of crypto. Simply download the open-source software, connect the API keys in your Beaxy account and configure a profitable market-making strategy.

Follow this guide for more detailed instructions on connecting your Beaxy account to Hummingbot and configuring the strategy that works best for you. This article shows you where to enter your API keys and what you should consider when configuring your strategy.

For more robust market-making, try Hummingbot’s new strategy that is based on the Avellaneda-Stoikov academic paper that provides two formulas for optimizing inventory amounts and bid-ask spreads.

Algorithmic Trading: It’s Easier Than You Think

To deploy this strategy on Beaxy, follow the steps in the guide to connect your API keys. Once your Beaxy account is connected via API, type ‘create’ into the command prompt. Then add the name of the strategy, “avellaneda_market_making” and hit enter.

Automate Your Profits on Beaxy

Profitable automated trading has never been easier. Create your Beaxy account today for convenient access to the most popular automated trading platforms.

On average, Beaxy traders pass KYC in five minutes or less. The cryptocurrency that you hold on Beaxy is secured by Curv custody, and your fiat currency holdings are backed by FDIC insurance up to $250,000.

Creating an account on Beaxy Exchange gives you access to:

  • Double your stack when you opt-in to the Deposit Bonus program
  • Buy, sell, or trade dozens of popular cryptocurrencies
  • Access revolutionary trading tools like Trender and Signals
  • Become an algorithmic trader with Gunbot, Hummingbot, MetaTrader 5, and more
  • Download the Beaxy Exchange mobile app for iOS and Android.